What definition does the Welsh Government use for a Welsh-owned or Welsh-headquartered business when developing economic policy, and what data does it hold on employment and turnover attributable to such businesses?
The ONS defines a "business headquarters" (or head office) as the central location of an enterprise where the principal operational functions, strategic decision-making, and executive management take place.
For statistical purposes, Welsh Government analysis defines a Welsh business as all businesses with activity in Wales (local units with turnover or employment greater than 0) regardless of whether their headquarters are based in Wales or elsewhere.
Welsh business data is available through the “Size analysis of Welsh businesses” publication which contains estimates of all businesses present in Wales including small businesses below the VAT and PAYE thresholds. Welsh Government also holds a data extract of the Inter-departmental business register (IDBR) which only includes business above the VAT/PAYE thresholds and the level of employment and turnover from these businesses.
When developing policy, the Welsh Government want to see businesses where strategic control is exercised from Wales and where a significant proportion of profits, management and social value are retained and invested in Wales. This aligns with the Foundational Economy mission statement objectives around local ownership, wealth circulation, local supply chains and economic resilience.